Which equity sectors can combat higher inflation? March 31, 2021 | City Talk Some investors are worried that inflation is set to rise. We look at which equity sectors could prove to be the most resilient. The sharp rise in bond yields over recent weeks has rattled equity markets amid fears that fiscal stimulus and a post-pandemic spending splurge could stoke higher inflation. Five-year inflation expectations, as measured [...]
City watchdog to consult on changing listing rules for SPACs March 31, 2021 The City regulator has announced it will launch a consultation on changes to London’s listing rules to provide more investor protection in blank-cheque vehicles. The Financial Conduct Authority (FCA) today said it will consider introducing a minimum market capitalisation and redemption option for investors. “Our proposals will help to ensure that SPACs operate within a [...]
Wall Street dips on tech sell-off after FTSE 100 closes higher March 30, 2021 Wall Street closed in the red today following a sell-off of tech stocks as US Treasury yields hit a 15-month high. The S&P 500 and Dow Jones both dropped 0.3 per cent, while the Nasdaq slipped 0.1 per cent. It came after the FTSE 100 pushed higher following a volatile start to the week as [...]
Former Warner Music boss Edgar Bronfman Jr. backs $300m SPAC March 30, 2021 A blank-cheque vehicle backed by former Warner Music boss Edgar Bronfman Jr has filed to raise $300m in a US listing. Waverley Capital Acquisition Corp 1 has said it will sell 30m units, consisting of shares and warrants, at $10 each. Bronfman is the latest high-profile figure to get in on the SPAC frenzy which [...]
PayPal to allow US customers to use cryptocurrencies in online shopping March 30, 2021 PayPal is set to allow its US customers to use their cryptocurrency assets to pay online, a move that may signal a shift towards digital currencies for online shopping. Formally announcing the move later today, PayPal will allow customers to convert bitcoin, ether, bitcoin cash and litecoin into fiat currencies at checkouts, the company told [...]
Bernoulli’s Prisoner’s Dilemma: applying the scenario to modern markets March 30, 2021 | City Talk In 1738, the Swiss mathematician and physicist Daniel Bernoulli proposed a simple thought experiment: “A rich prisoner who possesses two thousand ducats but needs two thousand ducats more to repurchase his freedom, will place a higher value on a gain of two thousand ducats than does another man with less money than he.” Let’s place [...]
Wall Street flat and FTSE 100 slips into the red as Archego default hits banks March 29, 2021 Wall Street closed flat and the FTSE 100 slipped into the red today as fears of potential losses from a major US hedge fund defaulting on margin calls held back stocks. While the Dow Jones gained 0.3 per cent, the S&P 500 was 0.09 per cent lower and the tech-heavy Nasdaq closed down 0.6 per [...]
Oil prices rise as as output cut hopes offset Suez Canal reopening March 29, 2021 Oil prices rose nearly one per cent today as hopes that Opec+ will hold output cuts reversed an earlier slump linked to the reopening of the Suez Canal. Futures had dropped earlier today after container ship Ever Given, which had grounded in the Suez Canal and blocked the waterway for almost a week, was refloated. [...]
Investment trusts beat dividend drought with record payouts March 29, 2021 As companies across the globe slashed payouts during the pandemic investment trusts beat the drought by raising dividend payments to record levels. Investment trusts dished out an extra £87bn in dividends last year, equivalent to a 4.2 per cent annual increase. Between April and December 2020 more than three quarters of trusts investing in equities [...]
Lord Hill: I’m no cheerleader for Spacs but UK should leave door open March 25, 2021 Lord Hill, who recently published a review into London’s listing rules, has said he recognises concerns over Spacs but fears the UK may regret paying attention to the vehicles in a few years time. Special acquisition companies – Spacs – have risen to prominence during the pandemic in the US and in parts of Europe. [...]